HomeMy WebLinkAboutResolution 96-30 07/01/1996
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RESOLUTION NO. 96-30
A RESOLUTION AUTHORIZING THE CITY MANAGER TO SIGN AGREEMENTS WITH
LANE COUNTY AND THE SONY DISC MANUFACTURING COMPANY TO EXTEND THE
PROPERTY TAX EXEMPTION TWO YEARS FOR AN EXPANSION OF SONY'S OPTICAL
DISC MANUFACTURING FACILITY IN THE MCKENZIE-GATEWAY AREA.
WHEREAS, the Sony Disc Manufacturing Company could receive a property tax
exemption under ORS 285.560 et. seq. because it is an eligible business firm, and
WHEREAS, the Sony Disc Manufacturing Company will agree that
(a) to compensate all new employees at an average rate of not less than 1 50 percent
of Lane County's 1994 average annual wage at the time of precertification until the
end of the tax exemption period; and
(b) to meet any additional requirements that the zone sponsors may reasonably
request, including the Sony Disc Manufacturing Company paying the City of
Springfield $59,520 in each of two years of extended Enterprise Zone benefits; and
WHEREAS, the Sony Disc Manufacturing Company anticipates it will complete the
expansion of its optical disc manufacturing facility in August 1996;
WHEREAS, the Sony Disc Manufacturing Company has filed a precertification
application form with the Springfield Enterprise Zone Manager and received precertification
from the Zone Manager and the Lane County Tax Assessors Office;
WHEREAS the Sony Disc Manufacturing Company has negotiated a First Source
agreement with the Southern Willamette Private Industry Council for referring qualified
candidates to the Sony Company for new job openings within the Springfield Enterprise
Zone until the end of the exemption period;
WHEREAS, the Springfield City Council would like to encourage investment in new
Springfield manufacturing facilities, increase both the number of family wage jobs and the
wages paid to its citizens in new economic sectors, assist in the diversification of
manufacturing in the local economy, ensure competitiveness of future Springfield
businesses, and provide support for the long-term operation of Sony's Springfield facilities.
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NOW THEREFORE, BE IT RESOLVED by the Common Council of the City of Springfield
as follows:
1. The Springfield City Council, as the governing body of one of the sponsors of
the Springfield Enterprise Zone, approves extending the property tax benefits of
the Springfield Enterprise Zone for two years to the Sony Disc Manufacturing
Company, as requested in Exhibit A and incorporated herein by' reference, for a
$12 million expansion project, provided Sony Disc Manufacturing pays the City
an annual fee of $59,520 for police and fire and life services in years four and
five and
2. Authorizes the City Manager to sign agreements with Lane County, the co-
sponsor of the Springfield Enterprise Zone, and the Sony Disc Manufacturing
Company to the terms described herein and provided that the Sony Disc
Manufacturing Company meets the terms of ORS 285.605 (2).
ADOPTED by the Common Council and approved by the Mayor of the City of
Springfield, this 1st day of July , 1996.
Adopted by a vote of L for and ~ against.
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Mayor
ATTEST:
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City Recorder
'" i.1 APPi-;
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EXHIBIT "A"
OREGON ENTERPRISE ZONE PRECERTIFICA TION
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. You must tile this form with the local &nterpr1se zone manager before your firm makes an InYeStJnen1 and hires n_ employ&es,
Namo aI ll<..odr'eU Arm
Sony Disc Manufacturing, A Division 0
T _ po-oone NlXllbe<
SlrMI~
123 International Way
Springfield
97477
1 ConIaa p.~
Thomas Costabile
II.Qp arC T u LeI No. of Erne<pris.e Zone SII.
of Operations See Attached
County where the qualiflEld busness fnn Lane
and the quafrflEld property are located:
1996
Enterprise zone where the quaif'ted business Springf ield
firm and the quaflied pcoperty are located:
Yo<x fum ;I'llends to apply lor an exemption in (specify tax year):
fChod< alIlh.lrl apply)
D First tme filing tor the el'lleqxise zone ex~
!XI Ring lor an additional enterprise zone exemption.
Thefi --~_... ...,..... (edfytax ) Initial investment received a Const.ruction in
. rm '''''''''''''' an exe"....1OO In sp year: ,
Progress exemption in 1994 and
Note: Any subsequent Investment requires precertification BEFORE the Investment occurs. 95
19 .
G9 Ann aJtTel1Ily operates III a single sile il the zone 0( within 30 miles d the zone.
D Ann currenlIy oper.lles aI mulp&e siles in the zone or within 30 miles 0( the zone. (Attach" map to this application showing the Bddress
and location of the muttlple sftes.)
o Rrm does not aJrrenlly operate aI a site within the zone or within 30 miles 01 the zone. (Attach" map to this application showing the
enterprise zone Investment sit.....)
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EUGIBLE BUSINESS
I3J Gross R60lllpts - What peroentage 0( your fltTl1's annual gross ~ lrom aclivilies willin the
zone win be lrom prov\ding goods, products, 0( seMces to o<her businesses?
liJ EligIble Business ActIvity - All ad~ musl occur at the site within the zone,
~ ManulaClUr'ng
D AsseIrbIy
DFabrication
D Processing
GO Shipping
o Stcxaoe
D Other (desat:te)
100
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Briefly desai:>e your product, QOOds. 0( services. Explain how your flrm's ac:tivily serves O<her businesses.
Manufacture of optical disc media and support activities.
QUAUFYlNG PROPERTY
~ Localionol Property: McKenzie Gateway Corporate Park
&_ Nt:lres$
nternational Wa 97477
12,000,000
The tctal estimated CClSl or value ol the ~lVestmel'll in quaifted prope<ty to be located with... the enterprise zone wit be .. $
Site proparation wil begin on .
N/A
N/A
N/A
N/A
5/31/96
6/30/96
7/31/96
Construction will start on ",., , , . , . , . . . . . . . ,
Construction will be oompleted by .."
Site wil be ~ by ,.
Mach.....ry ard eq~l will be purd>as&<f, leased, or translerred on
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Macti.....ry and eq~l will be installed by .,.,
Mach.....ry and equipment will be in use by ,
15()..3()3..()2l (Re.t. 2 44)
P aQ<l ,
7
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0escrDe the quaflfoed property lor which the enletprise zone property \"" exemption will be SOUQhl:
Equipment for manufacturing optical disc media.
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EM PLOYM err
~ Af$l Source Agreemenl -
Does your lfin agree to entElf' nto a fltSl source agreement belore l'irino any new employees \0 woric. will'in the zone?
0Cl Yes
" ~ Hlrlng-
Himg 01 new ~ wil begin on . . .
DNa
-..... ..... ..-..... -. ... ....... ... ............ -..
5/28/96
8131/96
New employee hiing will be completed by , . . . . . , . . . . . . . . , , , , , . . . . , . . . . , , . . . . . . . . . . . . . . . . . . , , . , . , . . . , , .
[2] New/Exlstlng Busll'lM$-
(checl< ore ard &15W8r correcponcing ~)
[] Hrm is currently operating in the enterprise ZOne 0< within J() miles 01 the zone and the linn's average employment will increase by 10
percent as a resul 01 the investment.
. FIml's average annuaJ ~nt lor 12 months prior to precertifJCalion 3 3 3
. Estimaled number 01 p:.sltjons to be aeated wilt-in the zone as a resul 01 tl'is new inveslmenI
minimum of 40
o Firm is currently operating beyond 30 miles cI. the boundary 01 the enlerpOse zone and the lfin's average employment will increase by 10
percent as a resul 01 the investment.
. Firm's average annuaJ ~nt lor 12 months prior to precertifJCalion
. Estimaled number 01 p:.sltjons to be created will'in the zone as a resul of tl'is new inveslmenl
o Hrm is a new business and the form wil hire at least one lul time e~.
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l!J 'Ched all tI\lI1 apply 10 your lItm)
SPECIAL CASES
o Tax exe~ion lor construdion i'l process.
o Wil1lease quaifled property.
o Partial ~ of an eflgible building,
o Will arnirish employment outside zone .
[] Urban zone residency requirements.
o Molel hole!. or desli'lation resort.
o Retail associa1ed with rnoteVholeVresort.
o Nonretai ope<ation of a retaillitm.
o T we CX><pocatioos under cxxnmoo ownership.
D Inveslmenl ol s:25 miRion 0(' mom,
D Lcx:aJ inaentiY9s 10 be provided.
D PtbfIC property avaiable lor sale 0< lease.
D Bigbie subjea to zone boundary amendment
00 Intend to requesl extended exemplion period (4' to five years).
Briefly explai'l d>eck&d items.
Springfield Enterprise Zone residency requirements to hire
at least 507. of new employees from within the Eugene _
Spri ngfi p 1 n IIrh::ln grmoTth hnllnn::lry
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DECLARATION
I decI.are under penallies 01 lalse swearing (ORS 305.990(4)) lhat I have examined this doc:urn&nl and anac:hments. and to the besl 01 my
knowledge. lhey are 1nJe. c:orrec1. and ~Ie. If any oItheirdormalion provided or attached c:tlanQes. I Wll'ncdy the zone manager as soon as
possble n writing. I understand that my firm wil Y receive the propeny tax ex~ l al applicable requirements oIlhe Oreg:>n Enterprise Zone
Ad 011991 are
-r HOf1~ COgJr(!)
S~. V. f. O~~~
On behalf ci the sponsors 01 the
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APPROVAL
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Enterprise Zone. this appk:atjco is:
[j Approved
~~'Msr~
~ with ooodlions (specify In attachmenl)
o Denied
The llong lee is:
~Waived
0S200
o ""0 ci 1 % ci real marl<et value
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Within fIVe wor1c:ing days aher ac:tiog on a preoertification application. the zone manager will provide copies 01 this lerm. and anachments, 10 the
applicant. the county assessor. the Department 01 Revenue. and the Eoonomic Develcpment Department. A copy WIll also be provided, without
an.actvneru. 10 the -COO1Iacl' agency" lor Ptbidy funded Ioc31 jc:b traini-lg ~.
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Sony Disc Manufacturing, a division of Sony Music Entertainment Inc.
Attachment to Oregon Enterprise Zone Pre-Certification
Tax lot 3502 is owned by Sony Music Entertainment Inc. and relates to map # 17-03-15-
0-0 and is situated at 123 International Way within the McKenzie Gateway Corporate
Park in the Eugene/Springfield Enterprise Zone.
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